NNPC Targets 9.1bcf/d Domestic Gas Supply With AKK Completion By Q4

Nigeria is targeting to raise its domestic gas supply infrastructure network from the current 6.9 billion Standard Cubic Feet (BCF) per day to 9.1bcf by the fourth quarter of this year with the completion of the Ajaokuta-Kaduna-Kano (AKK) pipeline, expected the add additional 2.2bcf gas transmission capacity.

Group chief executive officer of the Nigeria National Petroleum Company Limited (NNPC), Mele Kyari, who made this known, also said the country is targeting 16.6Bcf domestic gas infrastructure network by 2030 through future expansion plan to cover new markets across the country.

Speaking at the Oloibiri Lecture Series and Energy Forum 2023 organised by the Society of Petroleum Engineers (SPE) themed Effective Gas Resources Utilisation: A lever for Enhancing Energy Security and Achieving Net-Zero Emission Goals in Nigeria, Kyari said Nigeria’s domestic gas infrastructure network has an existing capacity to transport about 6.9bcf of gas to support power generation and gas-based industries.

Giving a breakdown of the existing domestic gas pipeline network of 6.9 bcf/d, the GCEO said the Western Network with a length of 1032.6 kilometres transmits 2.2 bcf/d, and runs through Escravos Lagos Pipeline System (ELPS) Oben-Sapele, Sapele-Sapele; the 392-kilometre West/North Interconnector from Oben – Ajaokuta/Geregu, transmits 1.7Bcf/d; also, the 264.8-kilometre Eastern Network transmits 1.0 Bcf/d to Alakiri-Obigbo Node, Obigbo Ikot Abasi and Imo River- Alaoji while the 135.5km East/West Interconnector Obiafu- Obrikom-Oben -OB3 transmits 2.0 bcf/d of gas.

Kyari said the AKK Gas pipeline coming on stream with additional 2.2Bcf domestic transmission capacity will move the country’s domestic gas transmission capacity to 9.1Bcf by Q4, 2023.

On the regional gas infrastructure projects, Kyari said the NNPC is taking advantage of Nigeria’s huge natural gas reserves of over 200 Trillion Cubic Feet (TCF) with a potential to grow to 600 Trillion Cubic Feet (TCF) as more investment is expected due to the recent resolution of the Production Sharing Contract disputes with partners. This significant reserve will serve as a low-carbon energy alternative that will support growth in the power and industrial sectors, address energy poverty, reduce carbon-footprint and create more employment opportunities. 

“NNPC is playing a leading role in the realisation of the federal government’s National Gas Expansion Programme, which seeks to deepen natural gas utilization as an alternative transportation fuel, and an important feedstock for the development of gas-based industries.

“We are working assiduously to ensure timely delivery of major domestic gas pipeline infrastructure projects including the Abuja-Kaduna-Kano gas pipeline corridor and associated power plants.

NNPC is also making progress on the planned Nigeria-Morocco and the Trans-Sahara Gas Pipelines that will connect West African countries to deliver natural gas to the international markets.

Industry operators and regulators were of the general consensus that Nigeria’s effective utilisation of gas as a resource and as the accepted transition fuel will require higher investments and an enhanced security system.

Kyari, said Nigeria needs a stronger economy to tend to its teeming population and eradicate poverty adding that the country’s energy demand will grow faster than what renewable energy technologies are likely to offer in the near future.

 He said there is need for massive investment and security upgrade to effectively utilise gas, adding that the huge investment in gas infrastructure is hinged on growing the country’s natural gas reserves, which will support its aspiration to create Africa’s biggest industrial hub powered by low-carbon energy. 

“Nigeria’s huge natural gas reserves provides us with ready access to low-carbon energy to address energy poverty; Although we have infrastructure to support this but it is not enough, we need all the necessary infrastructure on ground to ensure that we first build our own country gas infrastructure,” he said. Kyari added that efforts are being intensified to ensure timely delivery of major domestic gas pipeline infrastructure projects including the Abuja-Kaduna-Kano gas pipeline corridor and associated power plants as well as the planned Nigeria-Morocco and the Trans-Sahara Gas Pipelines that will connect West African countries to deliver natural gas to the international markets. 

“Our country is energy deficient and the bridge fuel to energy security and sustainability of oil and gas operations is gas; all these cannot be achieved if we do not have security of our operations and adequate and timely investments to build resilient energy systems capable of delivering energy to support socio-economic development in a sustainable manner,” he said. 

Permanent Secretary, Ministry of Petroleum Resources, Gabriel Aduda, in his address said infrastructure is essential for ensuring that gas is available when and where it is needed, especially in expanding domestic utilisation and it can also help to reduce the cost of gas by increasing competition and efficiency. 

He said the ministry is playing a crucial role in the effective utilisation of gas resources in Nigeria, by developing policies and regulations that encourage the use of gas, promote investment in gas infrastructure, and the development of a competitive and efficient market-based pricing mechanisms and encouraging the participation of multiple players in the market. 

“One of the most important ways is by promoting the development of gas infrastructure, creating enabling environment and partnerships with the private sector to build pipelines, storage facilities, and other infrastructure necessary for the transportation and storage of gas,” he said.

Aduda said some results have been achieved in the domestic intake of LPG and CNG in several small and medium scale industries across the country, adding that collaboration with stakeholders in the industry will ensure that Nigeria maximizes the potential of its gas resources while also reducing its carbon footprint and enhancing energy security.

Chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Ahmed Farouk, said Nigeria has abundant gas resource while it continues to suffer energy crisis.

Farouk who was represented by Mustapha Lamorde, executive director of Health, Safety, Environment and Community (HSEC), NMDPRA said It is therefore necessary to see more indigenous use of the vast resources available through formation of enabling policies, available finance and investment, indigenous capacity building and in-sector diversification.

“The oil and gas sector must look inward and leverage potential; there are untapped opportunities in the midstream and downstream gas value chain which should be a revolution to foster economic stability and growth of our nation,” he said.